JPY dominates the markets (13/10/2014)

It’s Monday morning and even thought it is still early we continue to see that JPY dominates the markets. Also CHF seems to be gaining some strength. With today however being a bank holiday in USD and Canada and Eurogroup Meetings taking place it may be difficult to find a good entry opportunity today.

JPY dominates
jpy dominates 20141013

A quick analysis using our Currency Power indicator that shows how strong a currency is in the scale of 0 to 10 gives the above picture.

  • JPY score is extremely high
  • CHF seem to gaining some strength
  • AUD and CAD weakening
  • USD,EUR,GBP,NZD are in neutral zone

This is strength in the JPY that we demonstrated last week when we showed opportunities to buy it against EUR,CHF and GBP

Based on the above readings is a good idea to look for opportunities to buy JPY and CHF ,sell AUD and be a bit cautious regarding EUR,USD and GBP.

At the moment however JPY is in overbought region so may not be a very good idea to buy it now and should wait. I will demonstrate the setup involving the strongest and weakest currency based on the Currency Power indicator reading.

AUDJPY (H4) Wait and Sell

Based on the Currency Power indicator readings, we should Sell AUD (weak score of 1.7) and Buy JPY (strong score of 9). Therefore Sell AUDJPY.

audjpy 20141013

  •  The Trend Bar is Red filled pointing Down Trend
  • A solid down trend line
  • Correction so far has been 80 pips

Note: This pair remains oversold and in correction mode. It is highly likely for the price to rise a bit higher prior to start dropping again.

USDCHF (H4)

Here is a setup involving USDCHF using the Trend/Wave/Extreme mini indicator

usdchf 20141013

  •  The Trend Bar is Red filled pointing Down Trend
  • Wave and Extreme Bars are neutral (USD is neutral based on the Currency Power indicator)
  • There is major support at 0.9520 which the pair is just testing. Break could easily lead to 0.9470(50 pips)
  • Resistance at 0.9590. Buy recommended if breached

GBPCHF (H4) SELL

The Trend/Wave/Extreme mini indicator is showing

GBPCHF 20141013

  •  The Trend Bar is Red filled pointing Down Trend
  • Wave Bar is down pointing down momentum
  • Extreme Bars is neutral (GBP is neutral based on the Currency Power indicator)
  • There is major support at 1.5320 which the pair is likely to test. Break could easily see  a 90 pips drop.

Read about the Trend/Wave/Extreme system here

The following is an analysis of the currency markets using the Trend/Wave/Extreme  . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.